Back to School! It’s the Most Wonderful Time of the Year

It’s that time of the year again. Thoughts are turning to back to school and some parents will be packing up their kids or have already done so and they are setting out to residences or apartments to start a new year of post-secondary education.? Whether they are heading out on their own or living at home, this newfound independence comes with a measure of responsibility and a whole lot of freedom.

As hard as they try to stay on top of things at school and even work part time jobs many find their money runs out before the end of the month does, their credit cards are over their limit or they end up with four different ones, their brand-new laptop has grown legs and walked out of their dorm room or worse yet someone has stolen their identity.?

My whole adult life has been about helping people manage their money and today I write and speak around the world helping people to get their personal and financial lives in order while they can. Today, I would like to talk to you about helping to set your children up for success before they even get their first job out of university or college.

Whether they are a new student or returning for another year, here are?Five Financial Basics?to help you and your child set themselves up financially as well as personally to have a successful and rewarding school year and to be prepared when that first big pay check comes their way in life after they have completed their academics.

1. Have a money conversation with your child?before?they have to start balancing their books.

You are the role model for your children when it comes to money and if you do not think they are watching your relationship with money, think again. Draw up a monthly budget with them and ask them what strategies they think they can put in place to be able to live within their means. Ask them how they think they will be able to cope the next month if they go over budget the month before.

2. Talk to them about credit cards that are often handed out like candy on university campuses.

Now do not get me wrong here! I am not saying that credit cards are bad but more than one is a recipe for disaster.? Some kids are using one card to pay off the other and hardly making the minimum monthly payment let alone eating.? If you want your child to have a credit card for things like buying books on campus and emergencies, then consider putting a low maximum limit on the card (e.g. $500). You can monitor the usage even though you are not always with them.?

Another option is a pre-paid credit card that works very similar to a gift card and does not affect an individual’s credit ratings. Explain to them how they can easily rack up debt and tear down their credit rating, which could take them years to repay and repair.

3. Protect their identity.

Often students are more interested in their studies and their social life than they are on keeping an eye on their personal information. However, in today’s day and age it is imperative that they remain vigilant.

If someone manages to steal their social insurance or social security number, other identifying information or their credit card information this too can have a devastating effect on their credit rating. Often students do not stay on top of these things so it could potentially take a while for them to notice.

Here are some tips to take precautions to prevent fraud.

• Sign up for credit monitoring – there are a number of free credit monitoring services that will monitor the information on their credit reports and keep track of their credit score. It can also alert them to fraudulent activity so they can stop thieves from doing more harm.
• ? Be vigilant of their online accounts – if you have set them up with a checking or credit card account check them regularly to be on top of unauthorized transactions. If you spot anything report it immediately to help mitigate responsibility at your end.
• ?Don’t give out information easily – make your children aware of the importance of protecting their information at all times. They should not be letting others know their pin numbers or passwords no matter how trustworthy their friend might be.? When they are using a debit or credit card in public be aware of their surroundings and who is watching. Also suggest they do not carry around large amounts of cash with them. While all of this might sound somewhat paranoid the world has changed for all of us in this regard so talking to your children about this is extremely important especially if they are moving away from home to attend school.
• Stay alert on social media – it becomes critical to understand what to share, how much to share, and with whom to share it while you network personally and professionally. Make sure you and your children are on top of tips/rules that will keep all of you fully covered when it comes to social media security.

?4. Tax tips for students and parents.

Many students think they do not need to file a tax return because according to them they are dirt poor.? Well, tax agencies wear a different set of glasses than they do and they are not rose colored. A number of students work during the school year and it is important to make sure they understand that they have to keep track of important information pertaining to their job. To help you with student tax questions and for parents who need to be aware of what affects you from a tax standpoint while your child is in school the Canada Revenue Agency website and the IRS website contain information for both students and parents around a number of important topics.

5. Insurance coverage for personal items. Travel insurance for emergency and non-emergency medical expenses.

There is so much going on when your child is returning to school that insurance on personal belonging is often lost in the chaos.

Some statistics show that there are nearly 4,000 fires each year in university residence halls and over 12,000 thefts.? So, taking into account these statistics, it should be easy to see the need for insurance to protect your child’s property.

The bill can add up quickly when you factor in a laptop computer, cell phones, clothing, etc. I suggest taking pictures of valuables and recording important information about the item(s) in the event you might have to file a claim and make sure to store them in a safe place.

Here is a great article containing a lot of helpful information to keep your children safe and to educate them on fire safety https://www.firescience.org/resources/fire-science-and-safety-education/

Whether your child is travelling out of province or state this year to begin their studies, or going overseas for a semester or two it might be wise to inquire about student travel insurance for them as well. There is a wealth of knowledge available online to help you with this or consult your financial advisor for advice.

?Going off to university or college for the first time or returning for another year should be an exciting time for children.? Therefore, setting them up for success will allow them to start their year on a high note and begin the next chapter of their lives in control of their financial future.

To learn more tips and strategies to help you take control of your family’s personal and financial future please visit janeblaufus.com?to order my best-selling book,? [STROKE] OF A PEN:?Claim Your Life and Planning Binder.?Follow me on Facebook, LinkedIn and/or Instagram.

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